I do have 8gb of memory with no other programs running and this is 1080/60 converted to 720/30 video and TaskManager shows I have memory to spare.

I have a lot of these and it's neccessary that I do a batch encode. The thing is that I can usualy encode the first item in the list but as the second one begins it crashes.

So it is possible for these files to be encoded successfully (the file plays fine) but the batch process is failing. It is not dependant on the specific file but just any file that isn't the first one in the list it seems.

I have sp1 installed and all important updates. I have been encoding WMV using Expression Encoder (even in batch) and Premiere Pro without issue.

I would use EE but it doesn't accept MTS officialy. I could choose "All files" from the file chooser to force it to load them, which has worked in the past, but then the files crash loading up. Not sure if that is related to the AME issues.

If it's the bug I'm thinking about, the key is that system memory usage exceeds some threshold--4GB rings a bell. My recollections of the fix are hazy as my involvement with this issue goes back nearly a year. I know Microsoft provided us a file to swap in place of a WindowsMedia dll. We did a second round of testing after SP1 was released, but I don't remember whether that testing, too, required manually swapping in the file with the fix.

In your case, what is the memory usage at the moment when AME crashes?

(these values fluctuate as i was recording them so they are off a little bit in relation to each other)

I have also set my page file to go from 256mb MIN to 1024mb MAX because I have a SSD for Windows and i wanted to save space. I heard it was not neccessary if you have a lot of ram... I will have 16gb of ram again soon (as i just sent the other 8gb in for replacement). So maybe this could be an issue..?